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BitMex Founder Arthur Hayes highlights danger of further decline in Bitcoin, Ethereum prices

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BitMex co-founder Arthur Hayes said that a further drop in Bitcoin (BTC) and Ethereum (ETH) prices below their current threshold could be disastrous for the market.

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Hayes tweeted that if the price of Bitcoin falls below the $20K mark, there will be a surge in spot sales of the digital asset. He added that the same situation would happen if Ethereum fell below $1,000. “We can expect strong selling pressure in the spot markets as dealers hedge themselves,” Hayes said.

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Hayes noted that, in addition to the listed positions, there is a huge amount of OTC market that is not tracked by metrics and indicators on the network.

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Arthur Hayes previously predicted that the price of bitcoin could someday rise to $1 million.

At press time, Bitcoin is trading at $22,578 and Ethereum is changing hands for $1,229. The market capitalization of the industry is also less than $1 trillion.

The current collapse began after the US Department of Labor released its data on consumer price inflation last Friday, saying that consumer inflation hit a 40-year high of 8.6% in May.

There are also speculations that the Federal Reserve will announce another interest rate hike in an attempt to curb raging inflation.

Cryptocurrency slaughter continues

The current sell-off in the market has taken a huge toll on the crypto industry as holders and companies have suffered huge losses on their investments.

Celsius, a crypto lending platform, has been forced to suspend withdrawals due to “extreme market conditions”. However, analysts doubt the solvency of the company.

Meanwhile, large stake holders such as MicroStrategy, El Salvador and Tesla are currently holding Bitcoin at a loss. According to available information, MicroStrategy currently holds bitcoin with nearly $1 billion in unrealized losses, while Tesla has over $300 billion in unrealized losses.

Cryptocurrency exchanges such as Coinbase, and others have been forced to contract due to the current market situation.

However, despite this rapid decline, investments in bitcoin is still 73% more profitable than major investment products such as the S&P 500, gold, Dow Jones and PIMCO Active Bond ETFs.

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